Phoenix Reports Net Loss Of $213 Million Last Year

The Phoenix Cos. reported a net loss of $213 million for 2014, due in part to audit fees, restatement expenses

The Phoenix Cos. reported a net loss of $213.2 million in 2014 and spent tens of millions of dollars on audit fees and expenses related to the company's restatement of financial filings, according to filings Tuesday with the U.S. Securities and Exchange Commission.

Last year, the Hartford-based life insurer and annuity company spent $73.3 million in expenses related to its restatement of finances to the SEC, and $29.3 million in audit fees, according to SEC filings. PricewaterhouseCoopers LLP is providing auditing and accounting services to the life insurer and annuity business.

Phoenix reported a net loss attributable to the company of $140.3 million for the last three months of 2014, compared with net income of $143.1 million during the same period in 2013.

The company reported a net loss of $213.2 million for the year, compared with a net income of $26 million in 2013.

The 2013 net income figure reported Tuesday differs from what the company reported in August, net income of $5.1 million for 2013 — the first time in six years Phoenix was profitable.

Phoenix's net losses in other years have been changed from earlier filings, too.

The company reported on Tuesday it had net losses of $165 million in 2012; $38.9 million in 2011; and $30.5 million in 2010, according to SEC filings. Phoenix had previously reported net losses of $168.5 million in 2012; $30.7 million in 2011; $34.4 million in 2010. The company has reported in the past that it had a net loss of $407.1 million in 2009.

"Management concluded that the errors identified in the fourth quarter and full year 2013 and second quarter of 2014 are in areas of internal control over financial reporting previously identified and disclosed …," the company wrote in Tuesday's filing.

On April 1, 2014, Phoenix filed its annual report for 2012 and a restatement of financial statements from 2012, 2011 and 2010.

Phoenix CEO and President James D. Wehr said in a statement: "In 2014, Phoenix dealt with a mix of challenges and positive developments. While we made meaningful headway on our business objectives, we had a large net loss for the year. We also concluded a complex restatement process and caught up on our SEC reporting obligations."